1/ Unveiling the $VRTX Liquidity Bootstrapping Auction (LBA) ⚡
The LBA marks the start of the $VRTX token launch, seeding its initial liquidity & allowing users to claim their pending $VRTX rewards.
🗓️ November 13th → November 20th, 2023
But what the **** is an LBA?
🧵⤵
2/ The Vertex LBA is a community-powered pool, designed to launch the $VRTX token. It’s primary goals include:
🌱 Seeding initial $VRTX market liquidity.
💪 Promoting fairness for launch.
⚖️ Reducing price volatility and botting.
🌊 Empowering passive liquidity provision.
3/ The Vertex LBA provides anyone with the opportunity to get involved in the launch process, acquire $VRTX, and earn rewards for participating!
The $VRTX token will officially launch at the end of the LBA!
➡️ How can you participate, anon?
4/ The Vertex LBA will take place over 3 stages. Each stage has a unique purpose and mechanism.
➡️ Stage 1: The 7-Day Auction
➡️ Stage 2: VRTX Token Launch & Liquid Claiming
➡️ Stage 3: Post-LBA Vesting & VRTX Tokenomics
5/ The LBA will run for 7 days & help establish a fair market price for the VRTX token, utilizing a fixed price curve (x * y = k).
More on VRTX price later…
6/ ANYONE can participate.
During Days 1-5 liquidity can be supplied to the LBA in 2 ways:
Users with VRTX trading rewards from Epochs 1 - 7 can:
➡️ Pre-claim VRTX rewards & supply to VRTX pool.
All users (including those with rewards) can:
➡️ Supply liquidity to USDC.e pool.
7/ Why deposit❓
A total of 1% of the token supply (10 million VRTX) is allocated to the LBA as rewards! This compensates users for locking their capital in the LBA and helping to assist price discovery.
LPs benefit from dual yield composed of:
➡️ Pool Fees
➡️ VRTX Rewards
8/ Participating LBA liquidity (i.e., LPs) is locked and vested for 120 days.
Day 0 -> 60: 1/3 of participants’ liquidity unlocks on day 60.
Day 60 -> 120: Liquidity vests linearly, concludes April 20th 2024
VRTX rewards will be distributed to LBA LPs weekly from 27th November.
9/ What is the price of $VRTX ❓
The VRTX launch price depends on the final LBA ratio between USDC.e & VRTX:
➡️ Amount USDC.e / Amount VRTX in the pool = VRTX price
No bots or price spikes. Just a fair mechanism for launch!
10/ Token Launch 👀
The LBA concludes on Day 7. At which point, pools 1 & 2 are fused to create the VRTX-USDC.e pool on the Vertex AMM.
Finally, the $VRTX token will launch (at the final price of the LBA)!
11/ Stay tuned for more updates on the Vertex LBA as we approach November 13th!
In upcoming posts, we’ll break down each stage of the LBA, including tutorials for the user-flow on the Vertex app.
blog.vertexprotocol.com/introducing-the-vertex-lba-the-auction/